Kennedy Wilson Expands Multi-Family Housing Portfolio by 880 Units with New Off-Market Acquisitions in Boise, Metro Idaho

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BEVERLY HILLS, CA – Global real estate investment firm Kennedy Wilson has acquired, in separate transactions, three existing apartment communities totaling 640 units for $ 143 million and an Opportunity Zone development site that is fully licensed for 240 units in the Boise, Idaho area. The three existing apartment communities include a wholly owned asset, The Lofts at Ten Mile, as well as two communities, Jasper and Towne Square, which were acquired with Boise-based real estate investment firm Roundhouse. Kennedy Wilson and Roundhouse also acquired the Dovetail development site, which is slated to end in 2023.

Kennedy Wilson owns an average 95% interest in these four investments and has invested $ 68 million of equity in the properties, using either fixed rate financing or variable rate financing hedged against long-term increases in prices. interest rate.

The off-market purchases reflect the focus on recycling equity from disposals of high-quality multi-family properties in the mountain states, a priority for Kennedy Wilson since his first investment in the region in 2012.

“We anticipate continued population and employment growth in the Boise area as individuals and employers seek relatively affordable housing, lower taxes, a more user-friendly business environment, better infrastructure and access to outdoors, ”said Nick Bridges, CEO of Kennedy Wilson. , which oversees multi-family investments in the region. “These trends, which had existed for years before the pandemic, have accelerated over the past year as parts of the two largest segments of the population, baby boomers and millennials, sought a better quality of life in the mountain states where Kennedy Wilson was an early investor.

Kennedy Wilson’s asset management plans include adding and upgrading amenities and updating unit interiors in existing communities. Additionally, Kennedy Wilson and his partner will develop a new 240-unit multi-family community at an Opportunity Zone site in Meridian, Idaho, which will cater to residents seeking a suburban lifestyle focused on the outdoors and focusing on the outdoors. emphasis on sustainability. The development will total $ 60 million in estimated construction costs, including an estimated equity commitment of $ 19 million by Kennedy Wilson over the life of the development.

The four properties will contribute 880 units to Kennedy Wilson’s growing multi-family presence in the Mountain States and are expected to add $ 9.4 million in net operating income, including $ 3 million in net operating income from the development of the zone of opportunity once it is completed. Owning approximately 2,500 multi-family units at market rates, including those under development, Kennedy Wilson is now the largest owner of conventional multi-family properties in the greater Boise area. All of the properties were either developed through a build-to-hold business plan or secured through off-market transactions, acquired directly from private sellers.

Kennedy Wilson and his partner Roundhouse recently completed construction on The Clara, a new 277-unit multi-family development in Eagle, Idaho, and the community is almost fully leased months ahead of business plans.

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